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Dec 31, 2023

Grainger Q4 2023 Earnings Report

Grainger reported solid fourth quarter and record full year earnings, issuing 2024 guidance with sales growth expected between 4% and 7%.

Key Takeaways

Grainger's Q4 2023 sales reached $4.0 billion, a 5.1% increase, with adjusted EPS rising by 16.7% to $8.33. The company's performance was driven by focused execution in both High-Touch Solutions and Endless Assortment segments.

Sales increased by 5.1% to $4.0 billion, or 5.5% on a daily, organic constant currency basis.

Reported operating margin was 13.9%, while adjusted operating margin reached 14.6%, an increase of 80 basis points.

Diluted EPS increased by 4.7% to $7.89 on a reported basis, and by 16.7% to $8.33 on an adjusted basis.

Plans were announced to open a new 1.2 million square-foot distribution center near Houston, Texas in 2026.

Total Revenue
$4B
Previous year: $3.8B
+5.1%
EPS
$8.33
Previous year: $7.14
+16.7%
Gross Profit
$1.56B
Previous year: $1.51B
+3.8%
Cash and Equivalents
$660M
Previous year: $325M
+103.1%
Free Cash Flow
$477M
Previous year: $312M
+52.9%
Total Assets
$8.15B
Previous year: $7.59B
+7.4%

Grainger

Grainger

Forward Guidance

The Company is providing the following outlook for 2024: Total Company(1)2024 Guidance RangeNet Sales$17.2 - $17.7 billionSales growth4.3% - 7.3%Daily, organic constant currency sales growth4.0% - 7.0%Gross Profit Margin39.1% - 39.4%Operating Margin15.3% - 15.8%Diluted Earnings per Share$38.00 - $40.50Operating Cash Flow$1.9 - $2.1 billionCapEx (cash basis)$0.4 - $0.5 billionShare Buyback$0.9 - $1.1 billionTax Rate~24.0%Segment Operating MarginHigh-Touch Solutions N.A.17.4% - 17.9%Endless Assortment7.3% - 7.8%